Business model

We look to develop and enhance strong relationships with our customers over the course of many years. By doing this we gain a unique insight into the traits of our target demographic, helping us to develop products and services that we know will be valuable to our customers, and helping them do more after 50.

The Saga difference

Saga exists to enhance the lives of retired people. At the heart of our business model, therefore, is our drive to know more about our customers' wants and needs than anyone else so we are best placed to serve them.

Based on our insight, we design the products and services that our customers want. We then decide the best way to produce them, either in-house or through a third party provider. This decision is based upon a number of factors including: the best outcome for the customer, how best to access specialist skills and knowledge, and the best use of capital.

Where third parties are used, our partners sign up to provide a Saga product, designed and tailored specifically for our customers and delivered to Saga specified levels of customer service.

In a majority of cases, Saga uses third party providers, meaning we do not have any capital at risk.

One of our core skills is the ability to manage our partners’ provision of products and services to Saga customers. We constantly monitor customer service feedback and quality and will, where necessary, change providers to ensure customers receive the Saga experience however they interact with us.

Our products and services are delivered through The Saga Model. The things that define our business:

A great brand: a trusted brand with 97% recognition amongst the UKs over 50s, allowing us to provide added value, fairly priced products across multiple categories.

Differentiated products: we listen to our 2.6m customers and the 11.2m people on our database to gain insight and tailor products and services specifically for them.

Outstanding service: our customers know what good service looks like, expect the best, and recognise it when they get it.

Saga’s flexible and capital efficient model has a strong track record of resilience and growth. It allows us to access the very best providers of products and services in any given market, to enter new markets very quickly and, with no capital at risk in the majority of cases, provides some protection against the impact of market conditions.

The breadth of our offering also provides protection against product specific risks, allowing us to focus our resources on the areas of the business that have the most potential for growth. Our capital efficient business model also means we are highly cash generative, with the majority of our profit after tax converted into cash after tax. This gives us the flexibility to continue to grow whilst paying down debt and growing long-term returns to shareholders via our progressive dividend policy.